Issue link: https://maltatoday.uberflip.com/i/1493026
maltatoday | SUNDAY • 19 FEBRUARY 2023 OPINION 5 Saviour Balzan I am scratching my head as I consider the kind of aggressive language of Steward Health Care International's implied SLAPP threat, an almost deliberate- ly egregious language asking the Maltese government to do the unthinkable and launch an "investigation" into collusion against MaltaToday journalist and editor Matthew Vella. I cannot imagine Steward Malta's CEO Armin Ernst as a kind of reckless or stupid man, who willingly consented to this kind of language in a letter sent to the editor by the hand of Steward's advertising people in Malta. SCHI, now based in Madrid, runs three Maltese state hos- pitals in a controversial pub- lic-private concession that could be at risk of rescission by a Maltese court. SCHI ac- cused Matthew Vella as editor and MaltaToday of acting in collusion with a short seller – Viceroy Research – a compa- ny that is calling into question the financing model of Amer- ican real estate giant Medical Properties Trust (MPT) and its ownership-cum-relationship to Steward Systems in Ameri- ca, and SCHI. Naturally, all this was de- nied by Matthew Vella and the newspaper, and the SLAPP threat lead to an avalanche of support for Vella, apart from a declaration by Prime Minister Robert Abela that it would en- tertain no such investigation. But back to Ernst: surely he knew that this request was go- ing to be met with a very neg- ative response, painting what is already a very unpopular company in Malta as doubly arrogant and nasty. Why did it want to make sure everybody hates Steward on the eve of an important court decision that could, potentially, spike its lu- crative Malta contract? Probably, Steward wants to build its case for what could happen if a court judgement goes Adrian Delia's way and says that the government con- tract should be rescinded. Let's apply some reverse psychology: Steward is not really interested in Malta, because at the end of a possible rescission by the Maltese courts, is a hefty €100 million penalty authored by the hand of former minister Kon- rad Mizzi... and if that prospect is triggered by the courts, then litigation will ensue for Stew- ard to collect its dues, apart from alleging that that the Mal- tese government and others have purportedly destroyed its reputation. They know that if Mr Justice Franco Depasquale decides in favour of a case instituted by former PN leader Adrian Delia, they run the risk of their con- tract rescinded and forced to pack up and leave. Jolly good, one might add. But there is al- ways that handy side-letter that was offered to Steward on a sil- ver plate, which means the gov- ernment will have to fork out a €100 million penalty. That was quiet a nasty be- hind-the-scenes obligation penned by Mizzi and former prime minister Joseph Muscat, behind the Cabinet's back, rais- ing so many questions about the actions of the former ad- ministration. So if I may be allowed to spec- ulate, every little episode that makes Steward appear like the baddies and hasten a judicial ruling against them... actually makes Steward happier. The end-game is that €100 mil- lion penalty, as Adrian Delia had told MaltaToday in 2021: "They know they have a toxic contract... so all they can do to rake in the money is to ei- ther insist with the State to pay them more millions to run the hospitals, or take the €100 mil- lion penalty," Delia said. Delia indeed pointed out that while he had submitted docu- mentary evidence that Steward had not upheld the conces- sion's milestones, the compa- ny's response had been weak at best. "They did not even send a representative for me to cross-examine, and their pho- tographic evidence of works done at the hospitals did not even come with, say, a hit-list of their accomplishments... since they are not rebutting what I'd describe as robust ev- idence against them, I ask my- self: what are they doing to save their own skin?" As I said, Armin Ernst is not dumb. He was after all the man who 'left' Steward in the USA when he entered the scene through Vitals Global Health- care, who then saved the day when Vitals packed up and left to have the concession turned over to Steward Health Care, and remained as CEO... Vitals was one big phoney front that was built to rake in the public money it was paid to run the hospitals; now, we are sup- posed to have been given the 'real deal' with Steward. But as Armin Ernst knows, if Steward's deal is rescinded, they will be passing GO and collect £200... unless, one as- sumes, the outcome of this court case is that some sort of criminal inquiry ensues over suspicions of fraud or corrup- tion. And what would the Mal- tese government then do in that case? One hopes, ensures that the police investigates the authors of this hospital con- cession deal, including former politicians at that. Undoubted- ly, it would be a serious embar- rassment for the Abela admin- istration... even if €100 million cheaper. They want to pass 'go' and collect €100 million Steward Malta's CEO Armin Ernst with former Prime Minister Joseph Muscat